Question

Speeding Horse Inc., the leader in the video game console market, is making its new generation consoles backward compatible with its previous games. This means that:

a. it is giving away its own installed base or complementary goods advantages to competitors.

b. it is providing a significant incentive to the owners of its previously developed consoles and games.

c. the transition of customers through product generations will become difficult.

d. a large range of complementary goods of the previous generations, mainly the games, will lose its existing value and utility.

Answer

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